UBA acquire Liberty Bank

by Richard Kilner

Story link: UBA acquire Liberty Bank

The United Bank for Africa (UBA) has formally acquired Liberty Bank after being granted approval from the NDIC (Nigerian Deposit Insurance Corporation).

UBA won the bidding for Liberty under the Purchase and Assumption (P&A) scheme, making it the sixth failed bank that has been taken over by the UBA recently.

The P&A exists in order to provide continuity of banking services and to encourage an environment conducive to economic growth, according to the NDIC’s chief executive officer, Ganiyu Ogunleye.

Under the rules of the acquisition UBA is now responsible for Liberty Bank’s private sector deposit assets and liabilities, running to a total of N1.7bn liabilities spread across more than 19,000 accounts.

Tony Elumelu, UBA’s chief executive and group managing director, praised the NDIC, referring to the previous arrangement of those who had deposits with failed banks.

Prior to the P&A scheme, depositors would be offered a set sum of compensation, regardless of the amount they had deposited with the failed bank.